@Chris Clothier ,I have no clue which market Nathan is talking about, but the fees sound excessive compared to MY market.

The property is under contract for 100k and I'm getting quotes for 1k to inspect the property which seems excessive but that's what I'm being told for a 2 unit property. 

You could have a cash flow in excess of a required interest on the money and management fees usual for the area, that becomes a profit and then you'd split that 50/50. :)

In other words, if I estimate that I can buy a property for $70k that needs $30k in renovations, should renovation budget go over by more than $6k, my partner and I split those incremental costs 50/50.CapEx/Emergency fund:  We agree to set aside 100% of excess rent revenues towards 1 year of expenses OR 100% of potential CapEx expenses for 30 years (whichever is higher).

But with the excess supply comming on the market due to people's economic needs I can see the possibility of excess supply vs demand actually decreasing even raw land prices.I just may have proved the last statement of my last post wrong!!!!

I'm actually also looking into investing in the stock market so I could direct excess cash flow to there if my rents are paying for my loan.

There would be more than enough fat to pay the mortgage, pay a property manager slightly above market for the extra headache, put aside reserves for capex and taxes, and still generate at least a couple hundred bucks in cash flow. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

If your property is larger, or has a lot of cashflow, and you intend to hold for a while, and you can use the excess depreciation, I would absolutely do it. 

Before you speak to people hoping to make a fat wad of money off you (a lender or a real estate agent), it would be a lot cheaper to buy a successful local real estate investor a nice sammich and listen to what he has to say as he's eating it.A sammich is a hell of a lot cheaper than an agent's commission on a single-family or interest on a six-figure loan.